“Ghost broking”, which is when unauthorised brokers sell doctored or fake cover to unsuspecting victims, now accounts for 20 percent of policy crime, according to Aviva.
And when furlough ends at the end of September, Aviva claims director David Lovely predicts scam levels will spike.
He said: “The recessionary factors caused by COVID-19 have arguably created the biggest fraud threat to customers in a generation. Currently, Government intervention is mitigating many of these financial impacts, but unfortunately, we expect to see significantly more fraud.
“Policy fraud, such as ghost broking, is one area in particular where we believe we will see increases in attempted fraud, as people misrepresent policies to access cheaper premiums.
“As households and businesses come under increased financial stress, we expect to see more claims of fraud, especially on home, small business and liability policies.”
And it’s not just insurance companies that are being targeted.
Financial crime detection software provider Feedzai says attacks on banks by criminals rocketed in the first quarter.
Cases where villains tried to disguise activities among legitimate transactions, grew 159 per cent. It added that the internet accounted for 83 percent of all card scams and that people using Android smartphones were nearly twice as likely to fall victim to cyber criminals.